Scripscan:Elder Health Care Ltd
cmp:110
Code:524830
Story:Company is selling many products mainly comprises of OTC products in pain management, fairness segment , oral care, lip care ,burn categories, Men,s and Women's grooming etc.Many of these products are in-licensed products of reputed multinational brands .This means that the brand is not owned by the company but it is only produced/distributed by the company. Such agreements always causing for thin margins for Elder .It is selling many international brands in India which includes - Tiger Balm, Blistex Lipcare balm,Essance Room Freshner,Fairone Fairness Cream,Neemtone Facewash,BeYu brand Cosmetics, Fuel deodorant body spray etc.In recent times as a change in its business strategy, Elder Healthcare is reducing its dependency on in licensed products and starts to concentrating in building their own brands.Dropping the sales of 'Tiger balm' and introduction of 'Octane' Brand deodorant is the best example of this changing strategy.Company is also planning many more new products its own.Now the management is planning to make it a Rs.300 Cr company in two years and reduce the ratio of in licensed - own products from current level of 90:10 to 50:50.Company having a small equity base of just 4 Cr and out of it 50 % is held by the promoters itself.In last full year Company posted a turnover of Rs.113 Cr,net profit of Rs. 1.74 Cr and an EPS of Rs.4.35. On successful launch of own products like recently launched 'Octane' its margins will surely improve.All FMCG company's are posting healthy gains mainly due to the middle class spending story of India in recent times both in terms of turnover and share price.Elder healthcare is expected to show the same growth which shown in last quarter of the last financial year. If it happens there is good scope for sharp appreciation even from current level considering the small equity/low floating stock nature of this FMCG company.
Source:Valuepick
Search This Blog(Over 800 companies covered in the blog).
Please note
Archives : Old artciles
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
